With over $12.2 billion in total locked-in value (or TVL), Fantom has dethroned Binance Smart Chain (or BSDC) to become the third-largest crypto protocol in the Decentralized Finance (or DeFi) industry. , according to data from DeFi Calls.
Fantom belongs to the new generation of proof-of-stake (or PoS) blockchains that aim to compete with Ethereum to solve scalability issues such as transaction cost, processing fee and time to completion.
For example, Fantom’s most distinctive feature is that each transaction needs only one confirmation, i.e. once a block is transmitted to the blockchain, it is final and irreversible. The Bitcoin network needs six confirmations; Ethereum, 12.
Of the $194 billion spread across the DeFi sector, the Fantom network controls over 6.23% compared to BSC’s 6.04%. It’s also not that far behind Earth, in second place, which commands 8.42% of the DeFi sector.
Ethereum, the largest standalone contract platform in the industry, continues to dominate market share, making up nearly 60% of DeFi activity.
Amid the market slump, which sent the price of bitcoin plummeting below $35,000, FTM, Fantom’s native token, has dropped 15.8% in the last 24 hours and 42.1% in the last seven days, according to the website CoinGecko.
Still, the growing activity on the net cannot be denied.
The network’s TVL is up 53% over the past seven days, making Fantom the only major network to record positive numbers during that period.
On the last day, Fantom’s TVL is up 16%, outperforming Ethereum’s, which is up 13% over the same period.
The cause for the rise of the Fantom
There is a flurry of activity happening on the Fantom network at the moment, as several projects using its blockchain are recording gains in terms of TVL.
These include the recently launched 0xDAO, a decentralized exchange (or DEX) protocol by the creators of Fantom, which already boasts a TVL of over $4 billion; and Multichain, an interblockchain router protocol that allows users to convert tokens between different blockchains using a bridge.
with about $9.5 billion in TVL, Multichain is the biggest DeFi project on the Fantom blockchain currently.
Also paving the way for exciting future advancements is Solid Swap, the newly announced automated market maker (or AMM) powered by the Fantom network.
Developed by Andre Cronje and Daniele Sestagalli, Solid Swap is expected to present a new token economy model called and(3.3), possibly enabling new opportunities for the broad DeFi industry.
*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co.